May 02, 2014

NAFCU welcomes eased notices for voluntary liquidation

May 5, 2014 – NCUA's proposal to ease notices required from credit unions in voluntary liquidation is a good fit with NAFCU's "dirty dozen" list of regulations targeted for change or elimination, NAFCU Regulatory Affairs Counsel Alicia Nealon said in a comment letter Friday supporting the proposal.

The proposed rule's changes, which NCUA noted are aimed at reducing the regulatory burden on credit unions, would allow liquidating federal credit unions to publish required creditor notices in electronic media or newspapers of general interest.

"The use of electronic communication and electronic fund transfers are an increasingly important way for credit unions to conduct their business effectively and efficiently," Nealon wrote. "NAFCU supports efforts to review and modernize existing regulations to adapt to the technological advances in the credit union industry."

Nealon further encouraged NCUA to find other ways to ease credit unions' growing regulatory burden. She said since 2010, the number of credit unions has declined by more than 1,500 institutions largely due to the cost and complexity of complying with the growing list of regulations.

"NAFCU supports NCUA's efforts in this proposal to make a rule technically less cumbersome, and urges NCUA to continue to focus its efforts on eliminating or amending substantive rules so more credit unions can keep their doors open," she said.